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European PPP Center

EoI for M6 & M60

The prequalification documents for Phase 3 of the Hungarian M6 PPP motorway are due by 21 May. Financial and legal advisers for the tender are ING Hungary and Koves Clifford Chance.

The Ministry of Economy and Transport according to the 25/2007 decision of the parliament has started the public procurement tender on Phase 3 consisting of a 49 km long section between Szekszárd and Bóly (M6) and a 30 km long link from Bóly to Pécs (M60).

More information on the tender can be retrieved from Tenders Electronic Daily http://ted.europa.eu where it was published under the code 2007/S 70-085669.

Click here to see our previous news on M6.

Source: European PPP Center

Galileo PPP questioned

In order to avoid any delays in the implementation of the Galileo system, the European Commission suggests funding the infrastructure development of the satellite navigation systems from public funds.

10 May 2007 was the deadline for the Galileo consortium to agree on the new concession agreement. Even before this date the consortium comprised of AENA, Alcatel-Lucent, EADS, Finmeccanica, Hispasat, Inmarsat, TeleOp and Thales signalized their intention to step back. Their argument was that they would have to bear the major part of the financial risk without a clear definition of their ROI.

Michele Cercone, a spokesman for Barrot said: "The consortium was not speaking with one voice. The commission will now put forward its own options. We will have to redefine this private-public partnership.”

The Commission will present its alternative solution for the € 3.6 billion Galileo satellite navigation system on 16 May 2007. They proposed to clearly define the costs of infrastructure development and operations costs. The first could be financed from public sources whereas the latter from private sources.

Transport ministers of the EU 27 will decide on the further scenario of the Galileo satellite navigation system in June.

Source: European PPP Center

PPP in Latvia

The two most important entities forming Latvia’s PPP development are the Ministry of Economics and the Latvian Investment and Development Agency (LIAA). The ministry’s primary role is to elaborate PPP policy whereas LIAA provides support and consulting for PPP projects.

The countries’ policy framework was established in 2005, which provides a rational start for PPPs. Currently, a Contractual Public Private Partnership Law is being drafted and simultaneously a PPP project pipeline is developed.

According the presentation of Andra Feldmane, Director of Public Sector Development Department of LIAA, expected PPP projects (listed by ministries as project sources) are:

  • Ministry of Transport (Reconstruction and Management of State Main Roads)
  • Ministry of Culture (Concert Hall project, Contemporary Art Museum)
  • Ministry of Justice (Value for Money assessment in building of prisons)
  • Ministry of Interior (building of administration premises)
  • Municipality of Riga (New Administrative Centre, Northern Corridor in Riga)
  • Municipality of Ventspils (Development of District heating system in Ventspils)

Source: European PPP Center

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